Motilal Mohanlal Chanda, Nasik V. Income-tax Officer, Ward - 1(2), Nasik

ITA 1374/PUN/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3192 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 24-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Cost of acquisition
• Section: 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1374/PUN/2018 / ASSESSMENT YEAR : 2011-12 MOTILAL MOHANLAL CHANDA, 29/30, STERLING TOWERS, NEAR MATHURA HOTEL, DWARKA, NASHIK 422 009 PAN : AANPC8284H VS. ITO, WARD-1(2), NASHIK (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-1, NASHIK ON 21-05-2018 IN RELATION TO THE ASSES SMENT YEAR 2011-12. 2. THE FIRST TWO GROUNDS ARE AGAINST NOT ALLOWING PROPER EXEMPTION U/S.54F OF THE INCOME-TAX ACT, 1961 (HEREINAFTE R ALSO CALLED THE ACT). 3. BRIEFLY, THE FACTS OF THE CASE, ARE THE ASSESSEES LAND WAS ACQUIRED BY NATIONAL HIGHWAY AUTHORITY OF INDIA (NHAI) FOR APPELLANT BY NONE RESPONDENT BY SHRI PRASHANT MAHAJAN DATE OF HEARING 09-03-2020 DATE OF PRONOUNCEMENT 09-03-2020 ITA NO.1374/PUN/2018 MOTILAL MOHANLAL CHANDA 2 WHICH HE RECEIVED A SUM OF RS.22,00,468/-. THE ASSES SEE DECLARED LONG TERM CAPITAL GAIN AT RS.21,32,616/- AFTER CLAI MING DEDUCTION OF RS.67,552/- (I.E. COST OF ACQUISITION AFTER INDE XATION AT RS.20,444/- PLUS COST OF IMPROVEMENT AFTER INDEXATION AT RS.47,108/-). THE ASSESSEE CLAIMED EXEMPTION U/S. 54F O F THE ACT TOWARDS PURCHASE OF IMMOVABLE PROPERTY SITUATED AT VANRAJ SAHAKARI HOUSING SOCIETY WHICH WAS PURCHASED BY THE ASSESS EE ALONG WITH ONE SHRI ABHYARAM KADYAM. THE PROPERTY WAS PURCHASED AGAINST PAYMENT OF RS.19,47,000/- PLUS 50% S HARE IN THE STAMP DUTY. THE ASSESSING OFFICER (AO) ISSUED NOTICE U/S.148 BY OBSERVING THAT THE NEW PROPERTY WAS PURCHASED ONLY FO R RS.19,47,000/- WHEREAS THE SALE CONSIDERATION OF THE OLD PROPERTY WAS AT RS.22,00,468/-. SINCE THE COST OF ACQUISITION OF THE PROPERTY WAS LESS THAN THE AMOUNT OF SALE CONSIDERATION OF THE OLD PROPERTY, THE AO HELD THAT THE EXEMPTION U/S.54F WAS TO BE PROPORTIONATELY RESTRICTED TO RS.18,87,229/- RESULTING INTO AN ADDITION OF RS.2,15,960/-. THE LD. CIT(A) REDUCED THE DISALLOWANCE TO RS.1,62,358/-. AGGRIEVED BY THE CONFIRMATIO N OF THE ADDITION TO THE REMAINING EXTENT, THE ASSESSEE HAS APPRO ACHED THE TRIBUNAL. ITA NO.1374/PUN/2018 MOTILAL MOHANLAL CHANDA 3 4. I HAVE HEARD THE LD. DR AND PERUSED THE RELEVANT MATE RIAL ON RECORD. THIS CASE WAS ADJOURNED AT THE REQUEST OF THE AS SESSEE WHEN IT WAS POSTED FOR HEARING ON 24-01-2019. NONE APP EARED ON BEHALF OF THE ASSESSEE THEREAFTER EITHER PERSONALLY OR THROU GH ANY REPRESENTATIVE ON ALL THE SUCCESSIVE DATES FIXED FOR HEARING ON 28.2.2019, 04-04-2019, 29-04-2019, 04-06-2019, 20- 09-2019, 20-12-2019, 14-01-2020 AND TODAY, NAMELY, 09-03-2020. AS SUCH, I AM PROCEEDING TO DISPOSE OF THE APPEAL EX PARTE QUA THE ASSESSEE. 5. IT IS SEEN THAT THE AO REDUCED THE AMOUNT OF EXEMPTION U/S.54F AS THE COST OF ACQUISITION OF NEW PROPERTY WAS LESS TH AN THE AMOUNT OF LONG TERM CAPITAL GAIN FROM THE TRANSFER OF OLD PROPERTY. THE LD CIT(A) FURTHER REDUCED THE AMOUNT OF DISALLOWANCE BY CONSIDERING STAMP DUTY AND REGISTRATION FEES AT RS.1,02,300/- AND ALSO COMMISSION PAYMENT OF RS.37,500/ -. THE LD. CIT(A) DID NOT ACCEPT THE ASSESSEES CLAIM OF DEMOLITION OF HOUSE AT RS.42,500/- AND SAND PURCHASE OF RS.1,25,00 0/- ON THE GROUND THAT NO EVIDENCE WAS PRODUCED TO SUBSTANTIATE THE SAM E. IN THE ABSENCE OF THE ASSESSEE HAVING PLACED ON RECORD ANY EVIDENCE ABOUT THE EXPENDITURE FOR DEMOLITION AND SAND PURCH ASE ITA NO.1374/PUN/2018 MOTILAL MOHANLAL CHANDA 4 BEFORE THE TRIBUNAL AS WELL, I AM SATISFIED THAT THE LD. CIT (A) WAS RIGHT IN RESTRICTING THE CLAIM TO THIS EXTENT. 6. AS REGARDS THE THIRD GROUND CHALLENGING THE ISSUANCE OF NOTICE U/S.148, IT IS FOUND THAT THE AO RECORDED REASONS WHIC H WERE DULY SUPPLIED TO THE ASSESSEE AND THEREAFTER ONLY THE ASSESSMENT WAS TAKEN UP. NO CHALLENGE AGAINST THE INITIATION O F RE-ASSESSMENT WAS TAKEN UP BEFORE THE LD. CIT(A) AS WE LL. IN THE ABSENCE OF THE ASSESSEE PLACING ON RECORD ANYTHING ELSE TO SUBSTANTIATE THIS GROUND, I AM SATISFIED THAT NO FURTHER INTERFER ENCE IS WARRANTED. 7. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH MARCH, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 09 TH MARCH, 2020 ITA NO.1374/PUN/2018 MOTILAL MOHANLAL CHANDA 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-1, NASHIK 4. THE CIT-1, NASHIK 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 09-03-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 09-03-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *